Net sales for the period were $2.6 billion, up 7% versus the prior
year, attributable to volume (+4%) and acquisitions (+4%), partially
offset by currency (-1%). Price was relatively flat for the quarter.

The gross margin rate for the quarter was 36.4%. Excluding charges the
gross margin rate was also 36.4%, down from the prior year rate of
37.2%, as favorable volume and productivity were more than offset by
unfavorable currency of $25 million and Security margins.

SG&A expenses were 24.5% of sales. Excluding charges, SG&A expenses
were 24.3% of sales, compared to a 1Q’13 level of 25.5%, reflecting
the impacts of volume and cost actions implemented in 4Q’13 to improve
operating leverage.

Operating margin was 11.8% of sales. Excluding charges, operating
margin was 12.1% of sales, up 30 basis points from the 1Q’13 operating
margin of 11.8%.

The tax rate was 21.9%. Excluding charges, the tax rate was 22.1%, 520
basis points higher than the 1Q’13 rate which was favorably impacted
by the acceleration of certain tax credits and the positive impact of
U.S. tax legislation enacted in January 2013.

Working capital turns for the quarter were 5.9, up 0.1 turns from
1Q’13. Free cash flow, which was relatively consistent with the prior
year, was an outflow of $210 million, including $52 million of
one-time payments.

“Our performance in the first quarter of 2014 reflected the benefits of
the organic growth investments we made in 2013 and the cost actions we
announced late last year. During the quarter we achieved solid organic
growth in our CDIY and Industrial segments despite a very challenging
external environment impacted by continued emerging markets volatility
and to a lesser extent North America weather. Within Security, we are
seeing traction with the actions we are taking to improve performance
and continue to believe that we will see margin improvement in the
second half of 2014.”

1Q’14 Segment Results

($ in M)

1Q' 14 Segment Results

Sales

Profit

Charges1

Profit

Ex-Charges1

Profit Rate

Profit Rate

Ex-Charges1

CDIY

$1,216

$169.2

$0.4

$169.6

13.9%

13.9%

Industrial

$852

$130.3

$2.2

$132.5

15.3%

15.6%

Security

$573

$49.6

$2.3

$51.9

8.7%

9.1%

1 M&A charges primarily pertaining to synergy attainment

In CDIY, net sales increased 6% versus 1Q’13 as a result of volume
(+7%) and acquisitions (+1%), partially offset by currency (-2%).
Price was down 1% for the quarter. Solid organic growth was achieved
in all regions, leveraging our focus on innovation, emerging markets,
and brand development. Europe posted strong organic growth of 11%,
driven by continued share gains from successful new product
introductions across key regions and an expanding retail footprint in
certain markets. Emerging markets organic growth was up 7% against
continued challenging economic and political environments with
particularly strong growth in Brazil and Argentina. Despite some
pressure from weather, North American organic growth was up 5%, due in
part to our recent “Built In The USA” initiative. Excluding charges,
overall segment profit was 13.9%, lower than the 1Q’13 rate of 14.7%
as expected, given significant currency pressures in Canada and the
emerging markets amounting to $20 million, and carryover investments
in organic growth initiatives which offset volume, productivity and
SG&A cost reductions.

Net sales in the Industrial segment rose 16% versus 1Q’13 as a result
of volume (+5%) and acquisitions (+12%), partially offset by currency
(-1%). Pricing was relatively flat for the quarter. Engineered
Fastening posted 6% organic growth driven by strong global automotive
revenues, particularly in Europe and Asia, which resulted in growth at
nearly two times the rate of light vehicle production. The Infastech
integration crossed the one-year mark at the end of February and
remains on-plan to achieve both earnings and cost synergy targets.
Organic sales for the Industrial and Automotive Repair (IAR) business
were up 5% as a result of higher volumes in IAR’s European business,
and strength within the North American Mac Tools mobile distribution
and the MRO vending operations. Oil & Gas organic growth was up 11%
due primarily to North American onshore and global offshore
operations. Although Oil & Gas organic growth continues to be strong,
the pace of growth has slowed versus recent quarters as expected, and
will continue to do so over the next two to three quarters due to a
temporary lull in major onshore pipeline projects.

Net sales in Security decreased 3% versus 1Q’13 due to volume (-5%),
partially offset by pricing (+1%) and currency (+1%). Organic growth
within Security’s North America and Emerging Market businesses was
down 1% as performance of a number of North America-based operations
were adversely impacted by severe weather conditions, particularly in
January and February. Security Europe declined 7% organically due
primarily to lower installation and recurring revenues in various
regions, most notably Spain and France. Although the organic volume
decline in Security Europe was greater than expected, orders and
backlog continue to build and importantly, recurring revenue attrition
levels were slightly below 15% in the first quarter, reflecting an
improvement both sequentially and versus the prior year’s first
quarter.

Security segment profit rate excluding charges was 9.1%, down 170 basis
points from the 1Q’13 rate of 10.8% and 310 basis points lower than the
4Q’13 rate. The sequential decline in the rate relates primarily to the
seasonality of the Security segment’s business which historically
reports a lower operating margin in the first quarter of each year. The
year over year decline in the rate is due primarily to installation
field inefficiencies and lower volumes in the Security Europe business,
as margins within Security North America were up 40 basis points versus
prior year.

President and Chief Operating Officer, James M. Loree, commented, “Our
CDIY and Industrial businesses continue to demonstrate exceptional
performance, having achieved strong organic growth driven by an improved
European landscape, healthy automotive demand and our organic growth
investments which positioned us for share gain in the quarter. Not only
did we achieve impressive top-line results, but the operating margin
performance of these businesses was also noteworthy as we mitigated $25
million of currency headwinds with our sharp focus on costs.

“As for Security, we are diligently executing revenue and margin
improvement actions to improve performance within this segment. The
North American improvements are taking hold and, as expected, the
business is positioned to trend towards our long-term margin
expectations. The revenue and operating improvements in Europe mirror
the successful business model we have established in North America, and
while we are gaining traction by adopting the more centralized business
model in Europe, reorienting this organization is not a quick
transition. We are encouraged by the order growth and attrition
reduction in the European business, as well as the progress on key
process fixes. We must now translate these accomplishments into improved
financial results and expect to see positive operating margin growth
from Security in the second half of 2014. We have the right team in
place and are focused on the right issues to deliver a turn-around in
this business.”

Revising Of 2014 Outlook

Donald Allan Jr., Senior Vice President and CFO commented, “We are
raising the low end of our previously communicated 2014 EPS outlook to
$5.35 to $5.50 on an adjusted basis or $5.23 to $5.38 on a GAAP basis,
as we expect stronger full year results within our Industrial businesses
and indirect cost savings across the Company to more than offset the
impact of a slower improvement trajectory for our Security Europe
operation. We also continue to believe that our 2014 organic growth will
be 4%, and that our free cash flow will approximate $675 million
inclusive of approximately $250 million of one-time payments primarily
relating to 2013 restructuring actions. As planned, for the second
quarter we would expect organic growth to modestly decelerate given the
tougher comparables in CDIY and Industrial with EPS for the first half
of 2014 approximating 45% of estimated full year earnings consistent
with the prior two years.

“In addition to continuing to drive organic growth and improving
Security margins, enhancing our operating leverage is a key priority for
2014. We demonstrated this in certain businesses in the first quarter
and to ensure we continue to accomplish this across the Company, we are
focused on effectively executing our cost reduction actions, sharpening
our focus on indirect expenses and taking price to protect margins. We
remain committed to our capital allocation plan which provides for a
strong and growing dividend as well as the return of approximately $1
billion of capital to shareholders through 2015. These initiatives
combined with modest debt deleveraging are expected to improve capital
returns to value accretive levels for our Company and improve our cash
flow return on investment by 250 basis points through 2015.”

Merger And Acquisition (M&A)One-Time
Charges

Total one-time charges in 1Q’14 of $3.9 million (net of a $3.7 million
restructuring credit) primarily relate to integration and
employee-related matters. Gross margin includes $1.1 million of these
one-time charges while SG&A includes $6.3 million. $4.9 million of these
costs that impact the Company’s operating margin are included in segment
results, with the remainder in corporate overhead. Also included in
one-time charges are $0.2 million in Other, net.

The company will host a conference call with investors today, Thursday,
April 24, at 8:00am ET. A slide presentation which will accompany the
call will be available at www.stanleyblackanddecker.com
and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor
Relations iPad & iPhone app from the Apple App Store by searching for
“SWK Investor Relations”.

The call will be accessible by telephone at (800) 708-4540, from outside
the U.S. at +1 (847) 619-6397, and via the Internet at www.stanleyblackanddecker.com.
To participate, please register on the web site at least fifteen minutes
prior to the call and download and install any necessary audio software.
Please use the conference identification number 3698-5582. A replay will
also be available two hours after the call and can be accessed at (888)
843-7419 or +1 (630) 652-3042 using the passcode 3698-5582#. The replay
will also be available as a podcast within 24 hours and can be accessed
on our website and via iTunes.

These results reflect the Company’s continuing operations. In 3Q’13, the
Company classified two small businesses within the Security and
Industrial segments as held for sale based on management's intention to
sell these businesses. The business within the Industrial segment was
sold in February 2014. The operating results of these businesses have
been reported as discontinued operations for 1Q’14 and 1Q’13. In
addition, the Company sold its Hardware & Home Improvement business
(HHI), including the residential portion of Tong Lung in December of
2012. The sale of this business occurred in a First and Second Closing.
The First closing, which excluded the residential portion of Tong Lung,
occurred on December 17, 2012. The Second closing in which the
residential portion of Tong Lung was sold occurred on April 8, 2013. The
operating results of the residential portion of Tong Lung have been
reported as discontinued operations for 1Q’13. Total sales reported as
discontinued operations were $7.7 million and $32.9 million for 1Q’14
and 1Q’13, respectively.

The Company recast 2013 segment net sales and profit between the CDIY
and Industrial segments to align reporting with the current management
of the Company’s operations in the emerging markets to be comparable
with the current year presentation. There is no impact to the
consolidated financial statements of the Company as a result of this
segment realignment. The recast results for the quarterly and
year-to-date periods of 2013 are shown on page 14.

Organic sales growth is defined as total sales growth less the sales of
companies acquired in the past twelve months and any foreign currency
impacts. Operating margin is defined as sales less cost of sales and
selling, general and administrative expenses. Management uses operating
margin and its percentage of net sales as key measures to assess the
performance of the Company as a whole, as well as the related
measures at the segment level. Free cash flow is defined as cash flow
from operations less capital and software expenditures. Management
considers free cash flow an important indicator of its liquidity, as
well as its ability to fund future growth and to provide a return to the
shareowners. Free cash flow does not include deductions for mandatory
debt service, other borrowing activity, discretionary dividends on the
Company’s common stock and business acquisitions, among other items. The
normalized statement of operations and business segment information, as
reconciled to GAAP on pages 12 and 13 for 2014 and 2013, are considered
relevant to aid analysis of the Company’s operating performance and
earnings results aside from the material impact of the one-time charges
and payments associated with the Black & Decker merger, the Niscayah and
Infastech acquisitions and other smaller acquisitions of the Company.
Normalized free cash flow, as reconciled from the associated GAAP
measures on page 10 for 2014 and 2013 are considered meaningful pro
forma metrics to aid the understanding of the Company’s cash flow
performance aside from the material impact of the M&A-related payments
and charges.

CAUTIONARY STATEMENTS

Under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not historical, including but
not limited to those regarding the Company’s ability to: (i) achieve
full year 2014 diluted EPS of $5.35 - $5.50 ($5.23 - $5.38 on a GAAP
basis), with first half earnings approximating 45% of estimated full
year earnings; (ii) deliver organic growth of approximately 4% in 2014;
(iii) generate approximately $675 million of free cash flow for 2014
which includes approximately $250 million of one-time payments; (iv)
return $1 billion of capital to shareholders through 2015 ; and (v)
improve our cash flow return on investment by 250 basis points through
2015 (collectively, the “Results”); are “forward looking statements” and
subject to risk and uncertainty.

The Company’s ability to deliver the Results as described above is based
on current expectations and involves inherent risks and uncertainties,
including factors listed below and other factors that could delay,
divert, or change any of them, and could cause actual outcomes and
results to differ materially from current expectations. In addition to
the risks, uncertainties and other factors discussed in this press
release, the risks, uncertainties and other factors that could cause or
contribute to actual results differing materially from those expressed
or implied in the forward looking statements include, without
limitation, those set forth under Item 1A Risk Factors of the Company’s
Annual Report on Form 10-K and any material changes thereto set forth in
any subsequent Quarterly Reports on Form 10-Q, or those contained in the
Company’s other filings with the Securities and Exchange Commission, and
those set forth below.

The Company’s ability to deliver the Results is dependent, or based,
upon: (i) the Company’s ability to execute its integration plans and
achieve synergies primarily from the Infastech acquisition sufficient to
generate $0.10 of EPS accretion in 2014; (ii) the Company’s ability to
generate organic net sales increases of approximately 4% in 2014; (iii)
the Company’s ability to continue to identify and execute upon sales
opportunities to increase its CDIY, IAR and Security businesses in the
emerging markets while minimizing associated costs; (iv) the Company’s
ability to achieve a tax rate of approximately 21-22% in 2014; (v) the
Company’s ability to limit the increase in interest and other expense to
approximately $0.10-$0.15 of EPS in 2014; (vi) the Company’s ability to
improve margins in the Security business (versus the prior year) in the
second half of 2014; (vii) the Company’s ability to generate EPS
accretion in 2014 through cost reductions in its CDIY and Industrial
segments and its corporate functions; (viii) the Company’s ability to
limit one-time charges primarily associated with the Infastech
acquisition to $25 million in 2014;(ix) successful integration of
acquisitions completed in 2012 and 2013, and any additional acquisitions
completed during the year, as well as integration of existing
businesses; (x) the continued acceptance of technologies used in the
Company’s products and services; (xi) the Company’s ability to manage
existing Sonitrol franchisee and Mac Tools relationships; (xii) the
Company’s ability to minimize costs associated with any sale or
discontinuance of a business or product line, including any severance,
restructuring, legal or other costs; (xiii) the proceeds realized with
respect to any business or product line disposals; (xiv) the extent of
any asset impairments with respect to any businesses or product lines
that are sold or discontinued; (xv) the success of the Company’s efforts
to manage freight costs, steel and other commodity costs as well as
capital expenditures; (xvi) the Company’s ability to sustain or increase
prices in order to, among other things, offset or mitigate the impact of
steel, freight, energy, non-ferrous commodity and other commodity costs
and any inflation increases; (xvii) the Company’s ability to generate
free cash flow and maintain a strong debt to capital ratio; (xviii) the
Company’s ability to identify and effectively execute productivity
improvements and cost reductions, while minimizing any associated
restructuring charges; (xix) the Company’s ability to obtain favorable
settlement of tax audits; (xx) the ability of the Company to generate
earnings sufficient to realize future income tax benefits during periods
when temporary differences become deductible; (xxi) the continued
ability of the Company to access credit markets under satisfactory
terms; (xxii) the Company’s ability to negotiate satisfactory payment
terms under which the Company buys and sells goods, services, materials
and products; (xxiii) the Company’s ability to successfully develop,
market and achieve sales from new products and services; and (xxiv) the
availability of cash to repurchase shares when conditions are right.

The Company’s ability to deliver the Results is also dependent upon: (i)
the success of the Company’s marketing and sales efforts, including the
ability to develop and market new and innovative products in both
existing and new markets; (ii) the ability of the Company to maintain or
improve production rates in the Company’s manufacturing facilities,
respond to significant changes in product demand and fulfill demand for
new and existing products; (iii) the Company’s ability to continue
improvements in working capital through effective management of accounts
receivable and inventory levels; (iv) the ability to continue
successfully managing and defending claims and litigation; (v) the
success of the Company’s efforts to mitigate any cost increases
generated by, for example, increases in the cost of energy or
significant Chinese Renminbi or other currency appreciation; (vi) the
geographic distribution of the Company’s earnings; (vii) the commitment
to and success of the Stanley Fulfillment System; and (viii) successful
implementation with expected results of cost reduction programs.

The Company’s ability to achieve the Results will also be affected by
external factors. These external factors include: challenging global
macroeconomic environment; the continued economic growth of emerging
markets, particularly Latin America; pricing pressure and other changes
within competitive markets; the continued consolidation of customers
particularly in consumer channels; inventory management pressures on the
Company’s customers; the impact the tightened credit markets may have on
the Company or its customers or suppliers; the extent to which the
Company has to write off accounts receivable or assets or experiences
supply chain disruptions in connection with bankruptcy filings by
customers or suppliers; increasing competition; changes in laws,
regulations and policies that affect the Company, including, but not
limited to trade, monetary, tax and fiscal policies and laws; the timing
and extent of any inflation or deflation; currency exchange
fluctuations; the impact of dollar/foreign currency exchange and
interest rates on the competitiveness of products and the Company’s debt
program; the strength of the U.S. and European economies; the extent to
which world-wide markets associated with homebuilding and remodeling
stabilize and rebound; the impact of events that cause or may cause
disruption in the Company’s supply, manufacturing, distribution and
sales networks such as war, terrorist activities, and political unrest;
and recessionary or expansive trends in the economies of the world in
which the Company operates. The Company undertakes no obligation to
publicly update or revise any forward-looking statements to reflect
events or circumstances that may arise after the date hereof.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, Millions of Dollars Except Per Share Amounts)

FIRST QUARTER

2014

2013

NET SALES

$

2,640.8

$

2,476.5

COSTS AND EXPENSES

Cost of sales

1,680.5

1,567.9

Gross margin

960.3

908.6

% of Net Sales

36.4

%

36.7

%

Selling, general and administrative

647.7

664.7

% of Net sales

24.5

%

26.8

%

Operating margin

312.6

243.9

% of Net sales

11.8

%

9.8

%

Other - net

61.6

70.8

Restructuring (credits) charges

(3.7

)

42.9

Income from operations

254.7

130.2

Interest - net

40.9

36.7

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

213.8

93.5

Income taxes on continuing operations

46.8

8.8

NET EARNINGS FROM CONTINUING OPERATIONS

167.0

84.7

Less: net earnings (loss) attributable to non-controlling interests

0.2

(0.4

)

NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO
COMMON SHAREOWNERS

166.8

85.1

NET LOSS FROM DISCONTINUED OPERATIONS

(4.9

)

(4.0

)

NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS

$

161.9

$

81.1

BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK

Continuing operations

$

1.07

$

0.55

Discontinued operations

(0.03

)

(0.03

)

Total basic earnings per share of common stock

$

1.04

$

0.52

DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK

Continuing operations

$

1.05

$

0.53

Discontinued operations

(0.03

)

(0.02

)

Total diluted earnings per share of common stock

$

1.02

$

0.51

DIVIDENDS PER SHARE

$

0.50

$

0.49

AVERAGE SHARES OUTSTANDING (in thousands)

Basic

155,905

155,552

Diluted

158,951

158,994

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, Millions of Dollars)

March 29,

December 28,

2014

2013

ASSETS

Cash and cash equivalents

$

432.6

$

496.2

Accounts and notes receivable, net

1,795.8

1,633.0

Inventories, net

1,663.1

1,485.2

Assets held for sale

4.6

10.1

Other current assets

375.1

344.2

Total current assets

4,271.2

3,968.7

Property, plant and equipment, net

1,482.4

1,485.3

Goodwill and other intangibles, net

10,618.9

10,632.9

Other assets

460.4

448.2

Total assets

$

16,832.9

$

16,535.1

LIABILITIES AND SHAREOWNERS' EQUITY

Short-term borrowings

$

683.5

$

402.6

Accounts payable

1,581.8

1,575.9

Accrued expenses

1,185.6

1,236.2

Liabilities held for sale

4.9

6.3

Total current liabilities

3,455.8

3,221.0

Long-term debt

3,831.1

3,799.4

Other long-term liabilities

2,566.7

2,634.2

Stanley Black & Decker, Inc. shareowners' equity

6,897.8

6,799.2

Non-controlling interests' equity

81.5

81.3

Total liabilities and equity

$

16,832.9

$

16,535.1

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

SUMMARY OF CASH FLOW ACTIVITY

(Unaudited, Millions of Dollars)

FIRST QUARTER

2014

2013

OPERATING ACTIVITIES

Net earnings from continuing operations

$

167.0

$

84.7

Net loss from discontinued operations

(4.9

)

(4.0

)

Depreciation and amortization

110.4

105.8

Changes in working capital1

(330.3

)

(195.0

)

Other

(94.2

)

(139.0

)

Net cash used in operating activities

(152.0

)

(147.5

)

INVESTING AND FINANCING ACTIVITIES

Capital and software expenditures

(57.8

)

(76.6

)

Acquisitions, net of cash acquired

(3.2

)

(853.9

)

Proceeds from issuances of common stock

13.2

83.2

Net short-term borrowings

282.3

1,330.5

Cash dividends on common stock

(80.7

)

(79.1

)

Purchases of common stock for treasury

(19.4

)

(21.1

)

Payment on forward stock purchase contract

-

(350.0

)

Other

(46.0

)

(44.0

)

Net cash provided by (used in) investing and financing activities

88.4

(11.0

)

Decrease in Cash and Cash Equivalents

(63.6

)

(158.5

)

Cash and Cash Equivalents, Beginning of Period

496.2

716.0

Cash and Cash Equivalents, End of Period

$

432.6

$

557.5

Free Cash Flow Computation2

Operating cash outflow

$

(152.0

)

$

(147.5

)

Less: capital and software expenditures

(57.8

)

(76.6

)

Free cash outflow (before dividends)

$

(209.8

)

$

(224.1

)

Merger & Acquisition-related charges and payments4

51.8

94.5

Free cash outflow, normalized (before dividends)3

$

(158.0

)

$

(129.6

)

1The change in working capital is comprised of accounts
receivable, inventory, accounts payable and deferred revenue.

2,3Free cash flow is defined as cash flow from operations
less capital and software expenditures. Management considers free cash
flow an important measure of its liquidity, as well as its ability to
fund future growth and to provide a return to the shareowners. Free cash
flow does not include deductions for mandatory debt service, other
borrowing activity, discretionary dividends on the Company’s common
stock and business acquisitions, among other items. Normalized free cash
flow, as reconciled above, are considered meaningful pro forma metrics
to aid the understanding of the Company's cash flow performance aside
from the material impact of merger and acquisition-related activities.

2The normalized 2014 and 2013 information, as reconciled to
GAAP above, is considered relevant to aid analysis of the Company’s
margin and earnings results aside from the material impact of the merger
& acquisition-related charges.

3The normalized 2014 and 2013 business segment information,
as reconciled to GAAP above, is considered relevant to aid analysis of
the Company's segment profit results aside from the material impact of
the merger and acquisition-related charges.

1Reported, as adjusted for the recast of segment net sales
and profit between the Construction and Do-it Yourself (“CDIY”) and
Industrial segments to align reporting with the current management of
the Company's operations in the emerging markets to be more comparable
with the current year presentation. There is no impact to the
consolidated financial statements of the Company as a result of this
segment realignment.

3The normalized 2013 business segment information adjusted
for the previously mentioned realignment of certain segment net sales
and segment profit from the CDIY segment to the Industrial segment, as
reconciled to GAAP as adjusted above, is considered relevant to aid
analysis of the Company’s segment profit results aside from the material
impact of the merger and acquisition-related charges.